How soon can I cancel a car purchase?

Went to the dealer and signed a contract and put a deposit of $500 on my credit card. I have not signed any financing documents and I have not taken the car out. The car is still with the dealer. After some thought, I decided that I can get a better price elsewhere. Can I still cancel out on this contract and get my deposit back? Keep in mind that the dealer still has the car and all I only put is $500.

How soon can I cancel a car purchase?

If you read your bill of sale, it will tell you if they can sue you if you do not take delivery of the car. Most of the time the dealership will just keep your deposit. So the important question is can you save more than $500? If not, you just need to honor the deal you agreed to.

How soon can I cancel a car purchase?

You can back out anytime you want. You are not an owner until you actually take delivery of the car.

As far as the deposit is concerned, you may be entitled to a full refund depending on the laws in your state. In Illinois there is something called Truth in Lending. Any down payment must be made in real currency (checks and debit cards are ok). Deposits cannot be made on a credit card because you cannot borrow money (charge it) and claim that it%26#039;s money down because you are using someone elses money (the credit card company%26#039;s).

If you changed your mind before you signed anything, you%26#039;re in the clear. Hopefully, you didn%26#039;t sign a credit card reciept either. Most dealers will not run a credit card deposit through. They will simply go into the next room, make a copy of the card for their records, and let you think you just invested money. This makes the average person feel as if they have already begun the ownership process and have passed the point of no return. In reality, you are still 100% in control.